Silver Weekly Price Forecast – Silver Continues to Look For a Base

Silver Markets Weekly Technical Analysis

And you can see that we spent most of the week falling. At this point, we are testing the $26 level, a large, round, psychologically significant figure that has been important multiple times. The $26 level is an area that was previously the top of a major resistance barrier.

But at this point, if we break down below $26, this will just simply be the latest throw over. Alternatively, if we turn around and rally from here, we could see a rather significant move to the upside in silver. Perhaps trying to get back to the crucial $28.50 level. The $28.50 level, of course, is an area that’s been important multiple times going back, so it should not be a huge surprise to see that we have pulled back from there.

That being said, keep in mind silver is not gold and therefore it reacts a little bit differently to a lot of the crosscurrents that currently cause havoc in the markets. Interest rates, of course, have a major influence, but there’s also industrial demand, as silver is considered to be a fairly important industrial metal. Geopolitics can come into play, but silver is basically playing little brother to gold in that argument as well. It’s not really a safety asset, it’s more or less a highly speculative one and therefore much more volatile. Because of this, position sizing is paramount in general, and therefore we have to look at this through a lens of caution more than anything else.

For a look at all of today’s economic events, check out our economic calendar.